Casey says hold -- this one's a survivor
Eldorado Gold Corp ELD
Shares issued 72,996,872 Oct 20 close $0.49
Tue 20 Oct 98 In the News
Douglas Casey, writing in the Oct. 1 issue of his International Speculator,
comments that Brazil-focused Eldorado Gold will survive the depressed
market for junior resource companies. The reason is, he says, that higher
gold prices are imminent. The inveterate gold bug says in this issue that
"the price of gold isn't just going through the roof, it's going to the
moon." Of more immediate concern are its current share price -- 67 cents at
the time of his report-- and its cash position. Mr. Casey says its
treasury, which stood at a substantial $10-million on June 1, 1998, is
misleading because the company has even more debt. In addition, Eldorado's
cash flow is still not convincingly positive. Mr. Casey recommended the
stock in January 1994 at $4.45, again in September 1995, and in December
1996 at $9.35. The stock peaked at $10.10 in November 1996 following a
$150-million investment in the company by South African giant Gencor.
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